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KUWAIT CITY, Apr 12: Kuwait’s cash reserve with the International Monetary Fund (IMF) in January maintained the same level of KD 236.5 million as last November and December. It is the same record level achieved in July, according to the Central Bank of Kuwait’s data for January 2022, reports Al-Anba daily.
On an annual basis, the volume of Kuwaiti reserves deposited with the IMF increased by 7.9 percent at the end of January, at a value of KD 17.3 million, compared to their level of KD 219.2 million at the end of January 2021.
The status of the reserve in IMF consists of the reserve tranche, that is the amount of foreign currency that a member country may withdraw from IMF within a short period, and the debt to IMF (according to a loan agreement) in the account of public resources, which are at the disposal of the member country.
This includes the reporting country’s lending to the IMF under the General Agreements to Borrow, and the New Agreements to Borrow. The claims on the fund released in SDRs are foreign currency claims.
The volume of special drawing rights during the month of January also maintained the same levels of the past four months, reaching KD 1.36 billion, which are international reserve assets created by the IMF as a supplementary reserve asset to the reserve assets of the member countries of the fund. The fund distributes the special drawing rights among its members on the basis of the rate of their shares in the fund.
The total foreign currency and deposits abroad increased in January to reach KD 12.21 billion, which is an increase of 1.8 percent compared to KD 11.99 billion in December 2021.
Deposits here are the ones available on demand, which are deposits available with foreign central banks, the Bank for International Settlements and other banks. The currency also consists of paper money and coins in circulation from foreign currencies and generally used to make payments, with the exception of commemorative coins.
It is worth mentioning that the IMF works on enhancing financial stability and cooperation in the monetary field at the world level, and facilitating international trade, and increasing employment and sustainable economic growth. It also helps in efforts to reduce poverty worldwide.
The International Monetary Fund is managed by the 189 member countries.
IMF also provides advice on how to achieve economic stability, prevent financial crises, and improve living standards.
The total amount that the IMF can lend to a member country is $ 1 trillion